You can now own equity in Celsius by participating in our A-round of funding on BnkToTheFuture. Learn more here!

Celsius Beginners Guide

When you put your money in the bank, you expect to earn interest, right? Today, most banks offer so little interest that they might as well not even offer it at all. In countries like the US and Canada, interest rates are often well below half a percent, with 0.01% being the norm.

The Celsius Solution

Many people today are joining the cryptocurrency revolution by getting involved with bitcoin, Ethereum, and many other choices. Cryptocurrencies offer many advantages over traditional money. With Celsius, you will be able to earn a real, worthwhile interest rate on your savings. The Celsius Network will have a mobile wallet app where you’ll be able to deposit and spend your cryptocurrency. When you deposit bitcoin, Ethereum, or any other supported coin, you can choose to become a lender on the network. As a lender, your money will be used to give out loans to major financial institutions (like hedge funds and crypto funds) that want access to your cryptocurrency coins. In exchange, they pay you a real interest rate. When you lend with Celsius, you’ll have some protections due to the way our network is designed. Each time we lend money, we keep a small percentage of the interest earned and put it into a pool. In the event that there is a financial loss due to lending, we can use that pool to help protect our lenders. In addition, we plan to only lend crypto to financial institutions, where we expect the risk of default to be minimal.

Sometimes, You Just Need Cash

Bitcoin and Ethereum may be fantastic financial innovations, but what if you want to buy a car, make a down payment on a mortgage, or you just need some spending money? Until now, your only choice has been to sell your coins for money. The problem with selling is that once your coins are sold, they may cost a lot more money when you try to buy them back several months later. For example, if you sold bitcoin in January 2017 and tried to buy it back in December, it would cost almost 20 times more. If you would have held onto your bitcoin, you would then have 20 times the equivalent USD value. Lastly, when you sell cryptocurrency, you will be subject to capital gains taxes. This is the same as if you were to sell stocks or bonds. With Celsius, not only can you lend your coins to earn interest, but you can also borrow cash against them, without needing to sell. Since your loan is secured with your coins used as collateral, Celsius can offer very competitive interest rates compared to banks and credit cards. Once you repay your loan, your crypto coins are yours to keep. Since a loan doesn’t count as income or capital gain, you also don’t need to pay additional taxes like you would if you had sold your assets. Celsius aims to be a real, viable, and community-centric alternative to profit-seeking banks that just want to take advantage of their customers. Celsius is a nonprofit organization, and we want to give back to the community and encourage more people to join the cryptocurrency revolution. Not only that, we want to help bring in the next 100 million users to cryptocurrency with a useful, real-world application and set of services. We believe that banking is fundamentally broken, and that Celsius can offer a real, viable alternative for regular people around the world!

Borrowing With Celsius – How It Works

Ready to borrow against your cryptocurrencies with Celsius? Here’s how it will work!
First, you’ll need to install our easy to use the app and set up your account.
Next, you would transfer your digital assets like bitcoin and Ethereum into your new Celsius wallet.
After that, review the terms of the loan carefully, such as the interest rate and length of the loan. Once you agree, your coins will be locked in your Celsius account for the length of the loan.

Finally, once you receive your cash, Celsius will start to withdraw your monthly payment from your linked bank account once a month.

As soon as your loan is fully paid off, the cryptocurrency you used to back your loan will be fully unlocked and is yours to do with as you please.

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